Budgetary Quotation

Unable to provide a firm quotation to your customer because your software or hardware vendors have yet to finalise their pricing?

A Quotation is an offer (with essential terms e.g. price, quantity, delivery) to supply goods or carry out work. Your offer is capable of acceptance by the customer to result in a legally binding contract.

A Budgetary Quotation is mean to sere as an estimate. Customers often find this useful for the purpose of setting aside a procurement budget. In a Budgetary Quotation, essential terms are vague and uncertain, so they not capable of creating a contact.

If you intend to issue a Budgetary Quotation, be alert to the risk of your customers arguing that it amounts to an offer capable of acceptance. You can incorporate language like:

This Budgetary Quotation is provided solely for budget planning purpose, and does not constitute an offer made by us, that can be accepted by you. If we subsequently submit a offer, that offer will contain more details and may differ in some aspects from this Budgetary Quotation.